Is Upstart Stock a Buy After Cutting Guidance Amid Rising Rates?
It's usually best to get ahead of bad news. That seems to be the approach the artificial-intelligence lender Upstart (NASDAQ: UPST) is taking after announcing some preliminary second-quarter earnings numbers ahead of schedule and telling investors to brace for results that will be well below expectations.
Shares of Upstart are down more than 17% in after-hours trading on the heels of the news. Is the stock a buy, now that it's trading near all-time lows?
Upstart said it expects revenue for the second quarter to come in at around $228 million, far lower than the $295 million to $305 million the company initially guided for. Furthermore, Upstart told investors to expect its contribution margin to come in around 47%, which is more than the 45% it had guided for.
Source Fool.com
